Scottish Beer & Pub Association calls for a 'rethink' on new legislation proposals

Kained Holdings opened its first pub, Lebowskis, with financial support from a beer-tie arrangement

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A divide has opened up in Scotland's pub industry following a call for Neil Bibby to "think again" about the introduction of new legislation.

The Labour MSP has introduced a Bill to the Scottish Parliament which he says will "reset the relationship" between tied Sottish pubs and their landlords. Backed by CAMRA, the legislation aims to extend protections given licensees in England and Wales to their counterparts north of the Border.

But the Scottish Beer & Pub Association - part of the British Beer & Pub Association - has warned the Bill will do the opposite of what it sets out to achieve and "seeks to find a solution to a problem that doesn't exist".

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The organisation is urging MSPs to reject what it claims is a "damaging" proposal that will stifle investment by removing the access to funding that comes with being tied to a large pub company.

Brian Davidson, president of the Scottish Beer & Pub Association, said the Bill would only affect 17 per cent of the country's pubs - approximately 850 in total. He is calling for efforts to "secure meaningful support" for all 4,900 pubs in Scotland.

"Pubs are of vital importance to the Scottish economy and communities across the country, so we welcome that they are on the agenda at Holyrood," Davidson said. "Our sector faces multiple challenges, and the support of politicians is essential to ensure the pub market remains vibrant and diverse, as it is today.

"However, we believe this Bill will do the opposite of what it sets out to achieve, and seeks to find a solution to a problem that doesn't exist.

"Last year a comprehensive independent report by the Scottish Government found that no part of the pub sector in Scotland was unfairly disadvantaged over another.

"Any reform should be evidence-based, and evidence to back these proposed changes is noticeably absent. If successful, this Bill will hurt small business owners, offer fewer choices to consumers and ultimately cost jobs."

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The association argues that the legislation introduced in England and Wales in mid-2016 is overly-complicated and badly written, to the extent that the adjucator has unable to make any formal public rulings and is said to face a massive backlog.

The introduction of similar legislation in Scotland would remove a source of funding that has led to start-ups such as Glasgow's Kained Holdings, the pub group set up in 2007 by Scott Arnot, Graham Suttle and Mo Clark.

Their first outlet, Lebowskis in Finnieston, was opened with investment from a pub company via a beer-tie agreement. They now have nine bars and restaurants employing more than 170 people.

"The beer-tie arrangement has afforded myself and my partners opportunities to grow our business, support local communities and employ over 170 people," Arnot said.

"We do realise that the model is not perfect. However, this Bill, while perhaps well-intended, is a threat to innovation and investment. It will see fewer opportunities for entrepreneurs and innovation in our industry, and ultimately fewer Scottish success stories in the licenced trade."

The Scottish Beer & Pub Association is hoping to secure broader support for the industry - with, for example, assistance on business rates - at a "round table" to be held with MSPs on 21 February.